Direct cost: A cost that can be directly associated to a specific cost object. Consider, for example, cost of paper in the magazine, cost of labor for packing department etc. It is a sum of direct material and direct labor. Direct manufacturing cost or direct product costs are used interchangeably for direct cost.

Direct material:A cost of material that can be directly associated to a specific cost object. Consider, for example, cost of paper in the magazine. Raw material is another word for direct material.

Direct labor:Labor cost that can be directly associated to a specific cost object. Consider, for example, cost of labor used to pack the magazine.

Indirect cost: A cost that cannot be directly associated to a specific cost object. Consider, for example, cost of administration, cost of equipment rental for packing department etc. It is a sum of indirectmaterial, indirect labor and other manufacturing overheads.Indirect manufacturing cost, manufacturing overhead or indirect product costs are used interchangeably for indirect cost.

Indirect material: A cost of material that cannot be directly associated to a specific cost object. Consider, for example, cost of glue used in the packing.

Indirect labor: Labor cost that cannot be directly associated to a specific cost object. Consider, for example, wages of cleaner.

Other manufacturing overheads: Any other cost that cannot be directly associated to a specific cost object. Consider, for example, taxes, rent of premises, insurance of building, depreciation of equipment etc.

Out of pocket expenses:Expenses for which you pay by cash or credit. Consider, for example, paying for watching a movie at a theater.

Opportunity cost: Cost involved for doing or not doing an alternate course of action. Consider, for example, paying for watching a movie at a theater has an opportunity cost of not staying home with family.

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

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